CFE audit 2024 quiz and answers

-seperate cheque processing from mailing cheques require two signatures -Clear seperation between parent and sub What is special report CAS 805? ANSWER- Audit level - Audits of single FS and specific elements, accts, or items of a FS -can provide assurance on values of accts used for covenants and bank security -certain elements (ex. AR over 45 days) can be addressed in this engagement that regular FS disclosure does not have -can specify if a covenant/line of credit has been overdrawn Pros -can leverage off audit work already completed -lower materiality = more testing -use other materiality base Cons - should be issued on same date as full audit report -require additional procedures -additional work beyond audit required What is special report 5815? ANSWER- Audit level - reports on compliance with agreements, statutes and regulations -Compliance of entire agreement